All Forum Posts by: Eric Teran

Architect + Development is exactly what I want to do and will do. I've been an architect for 15 years and have seen many developers. I figured it is time to go to their side of the table and bring in the profits. 

For those of you interested in pursuing down this path check out Jonathon Segal Architect. He has done some amazing stuff. He shows exactly how you can make a profit building new. He also offers a course called Architect as Developer. I've never taken it but it seems interesting and only cost a few hundred. 

I also have a mentor here in DC named Robert Bell. He finds old buildings and restores them to rent out to offices, retail and residential. He lives off his passive income and now does projects just for fun (with making money). 

Good luck on the offer! 

Right now I'm building my own house and plan to rent the basement. Long and adventurous road. It is extremely different when you are not just the Architect but also the Owner and Builder. You can read my website to see what I've been through in the first 60 days of construction. 

Architect + Developer!!!

This is from a colleague that certifies finished hotels, offices, buildings, etc. that they meet the guidelines as required by the ADA, ANSI and other accessibility codes. Owners use his services in case someone sues them. This way there is a record that the building does comply and certified by a professional. His boss actually sits on the board that writes the ADA guidelines. 

This is what he explained to me:

The ADA does not apply to private residential units. ANSI A117.1 only applies if the local code authority has adopted it into their building code. You would need to look at the Fair Housing Act if your rental units are in buildings with 4 or more units and were first occupied after March 13, 1991. You should contact your local building code office to see what kind of responsibilities you would have as a land lord. They should be able to answer your questions as it pertains to local ordinances. Also check with any local tenant advocate groups. They might be of use.

Attached is an overview of the FHA. Check the rest of the information at http://www.fairhousingfirst.org for more information. Reasonable accommodation is required for all units. No one defines “reasonable” so it would be up to you and your tenant (or the courts) to figure that one out.

I hope that helps. 

Also, across the country there is (or soon will be) a shortage for senior and accessible living. Having a walk in/accessible shower might seem like a negative now but if you market your rental unit to the right set of eyes you might find a new set of renters that no one is paying attention to. 

Here are three articles to read:

1. Senior Housing
2. Nations Looming Crisis
3. Brace for a Catastrophe

If you get the tenants to pay for the remodel as some posts have suggested you might be ahead of the game in a few years if/when they move out. Obviously the numbers have to work out but keep your mind open about other types of renters. Look 5-10 years down the line to see what will be needed in your area.

Good luck.

@Justin Tahilramani - the basement system is amazing as well. It is called Superior Walls. They are allowed on the East Coast but I don't think they have gotten approved for the West Coast yet. Also, they don't do many basement on the West. You can also build Superior Walls up to three floors. However, if you did that I would say build SIP (Structural Insulated Panels) instead. If you want a contact for Excel Homes let me know and I can forward you his email. 

It has been an amazing experience with my son. He loves playing in the mud and testing all the windows open/close properly. Hopefully we move in by the end of April so I can finally sleep!

Also, you don't need an Engineer as the modular company does all the structural plans. Same goes for the electrical and plumbing. Depending on your lot and zoning you could get away with no Architect. That hurts to say but it is true. 

Also all the inspection are done in the factory and the plans are approved by your state with a third party inspection agency. You might need to submit plans to your municipalities but that is more for references and zoning requirements. The only inspection you need are for you foundation and the connection to the modular home.

If you go this route and modify the design yourself just send it to me and I'll give you my comments to make it the most cost and layout efficient. 

@Justin Tahilramani I agree with you that some of the modular companies are not price competitive. There are some that price out around $400 SF which is ridiculous. However, they are really nice. If modular cost the exact same price as stick built I would still do modular because it will be better built and you will save a lot of time in construction. At least half. The plans you have are easily built in a factory. I don't know all your setback and zoning regulations but for modular you would go with a 15'-10" wide unit and they can be as long as 60'-0". Your plan would get a little skinnier but longer. Each unit would be it's own box so everything would be completed in the factory! 

After calling 30 companies I finally settled on Excel Home in Liverpool, PA. My main reason was that I liked a lot of there finishes that I could use so that I would not have to do them on site. They also provided lots of custom options like stand alone tubs and they were willing to built any width up to 15'-10". A lot of the companies only build 11'-10", 13'-10" or 15'-10" wide units. This limits a lot in the design. Since  this is our primary residence we did not pick all the finishes and appliances from Excel but if we were doing a rental or flip it could all be done in the factory. The more you pick/built in the factory they more you are going to save. 

Cost:

1. $140 SF - My entire home, 3,300 SF with a finish basement. This includes site work, permits, utility connections, finish landscaping, finishes. Everything. 
2. $80 SF - only the modular portion. If you go to my website go to Day 30 and you can see how they arrived. Drywall with primer and the floors were bare.
3. $100 SF - this is the modular portion plus the contractor fee to do the installation. 29 out of the 30 modular companies required you to go through a general contractor that acts as their representative in your area. They have to do the installation and make sure that it is water tight the same day everything is installed. I am building in Alexandria, VA where Contractors are expensive. I think in North Carolina you could get a much better price.

If you go modular plan on the amount of time for the site work (shouldn't be more than 2-3 weeks) plus a day for the modular installation and then another week to wrap it up. That is assuming you pick 99% of the materials from the modular company. 

Let me know if you have any other questions.

What type of construction method are you using? Currently I am building my new home using the modular method. From start to finish construction will take about 90 days. You can read my daily blog on my website to see the process. I'm an Architect and designed the home myself. With that being said looking at your plan you could build this with modular construction in under 50 days. Maybe 30 if you are really organized and choose all the materials from the modular company so that they build everything in the factory. You will save lots of time and money. More importantly you can start renting the units out sooner and start making money.

You will have to adjust your plans slightly but it will work. Let me know if you want more information and I can give you some guidance.

Good Luck!

@Sid Leibowitz, I did read the article (many of them) and I do realize that it failed. It was a huge undertaking and the first of its kind in the US. However, I wanted to point out that modular construction is allowed. As @Nick Coonis stated if it is zoned for a built home then modular just has to comply. That goes for other construction such as SIP (Sturctural Insulated Panels) or steel framing. If the wall has to be 2-hr rated then it has to be 2-hr rated no matter how you build it. I could see the city not allowing any oversize trailers on their streets and that might be a reason that they are not allowed in a city. 

I agree with you 100% that before anyone starts any project the first thing to do is call the zoning department. A lot of municipalities might never have dealt with a modular home so there might be some back and forth until the city clearly understands what is being built. It happened to me in Alexandria, VA.

I am an Architect of 15 years and worked in LA for 10 of those years designing custom homes. You will not be able to get a building permit until you get approved by zoning for subdividing the lot. It is a NO GO. Get your zoning permit first. 

The most you can do without a building permit is maybe some excavation for your foundation and that is it because you then have to call for an inspection for your rebar before they can pour concrete. You can't call for an inspection without a building permit and you can't get a building permit until you are approved by zoning. 

FYI when you subdivide the lot be sure that you setbacks work for the size home you want to build on there. The city will also require you to have a certain width along the street for your zone. 

Take your time and do it right. 

I'm going give you three options from my experience:

1. What you can do is hire an architect and have the plans all ready so that when zoning approves the subdivision you can go into the city the next day and submit your plans. That will save you a lot of time. Even have your contractor picked out so that they are ready to go as soon as you get the building permit. 

2. There is one possible solution. Find out from the zoning department if you are allowed to build a guest house on your current lot. If you can do that then you can get a building permit for a guest house while the subdivision process is taking place. That is the only scenario I can see for you to do what you want to do. 

3. Another option is to speed up construction. This goes along with option 1 but once you get your permits build modular! I'm doing it right now. Visit my website if you want my day to day experience. I'm a knew believer of this system. You will build the house in 3 months.

Do you currently have any plans or anything from an Architect? To get a building permits will take at least 8-12 months once you take into account the design time for the architect, planning/zoning approvals and finally the building department approval. Each time you submit something they will come back with comments for you to change something on the plans. Always happens no matter what. Even if it takes a year to subdivide your lot you will not get a permit until then anyway. I guess there is one more scenario.

4. Ask the county if you can submit to sub-divide your lot and beginning the submittal process to obtain a building process at the same time. Final approval of the building permit would be conditional on the approval of the sub-division application. 

PM me if you want some help or advice. 

@Sid Leibowitz I am sorry to say but NYC does allow modular as does LA and 99% of the country. I might even say 100% but only death is 100%. Read this ARTICLE where they are building a high rise in NYC with modular units or this ARTICLE about modular homes in LA. 

As @David Dachtera mentioned modular and manufactured homes are completely different. Manufactured homes are never attached to a foundation and those are not allowed everywhere. Modular homes are attached to the foundation like a typical home. 

@J Scott mentioned that a modular home might be less but it is comped at the same prices. There is no difference. A modular home is actually built better and better for the environment. Additionally when you do go sell a modular home there is no need to even mentioned it. It is just another house on the street. 

@Nick Coonis is correct on his pros about building with modular. However, I disagree on his comments regarding the cons. I am an Architect and am currently building my own modular house. It is true that the design has to follow certain guidelines but it can be 100% custom. It is just another guideline like property setbacks or a construction budget. My home is 100% custom that fits my budget. I could have gone crazy with my design but then it would not have fit my budget. You just have to get an Architect that knows how to design for modular construction. It took me a few tries to figure it out but now I know what is possible and it is endless. 

I am keeping a daily log of my venture in building my modular home that you can see on my website. 

I am on day 50 and I hope to move in on day 80. A modular home can be completed in 50-60 days if it is well organized. I've learned a lot throughout the construction process. I am acting as the GC but hired a contractor to do the modular setting. DO NOT do this yourself if it is your first time. Actually the majority (I called over 30 of them) of the modular companies will only allow their local contractor rep to install the modular units. However, I managed all the site work and now the finishes to save money. I used Excel Homes and they have been outstanding (North Carolina should be doable for them)! They have included a lot of custom options that the other 30 places would not even consider. Even a modern baseboard detail that I have done on million dollar homes that I have designed. They can do it. Please give them a call if interested. They are really good. 

Modular Photo of my house insatllation:

I also used Superior Walls to build my basement. I installed all my basement walls, 156 linear feet in 2.5 hours! I was amazed! The top of the walls was no more than 1/8" off from level over the 156' LF! The cost is the same once you compare apples to apples to a traditional CMU or concrete wall. I can get more into detail with this system if anyone wants. However, they do not allow these in seismic areas.

Superior Wall Photo. Everything installed by 11:15 am:

Here are some additional Pros: 

1. The city does not inspect the modular portion of your home. This is done at the factory as it is getting built by an approved third party agency. 
2. The home is built amazingly strong and precise. 
3. Waste is greatly reduce. I'm about 80% complete and by using Superior Walls and Excel Homes I've only had 1-1/2 trash bins hauled away. That is nothing! Better for the environment and better for you wallet.
4. Save money even on the small items. Look at the above number. I will only have to haul away 2 trash bins worth of trash in 28 days. Normally construction would easily be 5-8 trash bins and be kept at the site for months. I'll even save money on the port-o-potty. 3 months of construction is a lot less than 12 months. 
5. Save time! Time is money. I can move in and change my construction loan to my permanent loan. If you are renting a space then you can start renting your space that much faster.
6. When the home is delivered the set up contractor has to have the home watertight before the leave for the day. The home comes with drywall installed so they can't allow that to get wet. My shingles were installed that afternoon. That means finishes can begin the next day.
7. A modular home can be built on a hillside or anywhere. Once again this is doable based on the experience of the Architect designing the home. First the foundation will be built and then the modular home just gets placed on top
8. Modular units are great for additions.

So there are a few cons but minor ones that have solutions:

1. You need to have the modular trucks have access to the lot. If your property is on a winding road up a hill then you might not be able to do it. However, you could design smaller boxes and have smaller trucks deliver the units or even a helicopter. 
2. Insulation. The structure is strong so there are more studs within the exterior framing. Due to this the amount of insulation on the exterior wall is less than a home built on site. The more insulation on a house the better for energy savings. 24" OC is the best if using advanced building structure. Some parts of my wall have about a foot of studs. However, if this was really a concern to a client you could build a furred wall and install continuous insulation around that exterior envelope.
3. If you choose to use the modular finishes you have to choose them looking at photos from the internet. The local contractor rep might have some to phsycially show you but not all.

Some tips if you build modular

1. You can either choose a plan on the Modular companies website which is the easiest and cheapest way to go. However, we all know that every site is unique. If you need an Architect get one that has designed modular units before. I'm glad I was the Architect because there is a lot to know. 
2. When choosing the modular company look on their website and browse their finishes. They all have standard and upgrade finishes. The more you can pick the better so that more of it is installed in the factory. 
3. You will have to submit the approved modular plans to your municipality. However, they are for reference only and to verify that it works with your foundation or other site features such as a basement or garage. They also check to make sure all the zoning regulations such as setbacks are conforming. Some municipalities (like mine, in Alexandria, Virginia) required a full electrical and plumbing riser diagrams. Then you will need someone to provide that. Most modular companies will likely not offer that service.

After 15 years of practicing architecture, when possible modular is the way to go. I have a lot more to say so just ask away or PM for details. I would be happy to help and share my mistakes with anyone who decides to go this route. Even if you want to build duplexes or fourplex or an addition or anything, modular can work. 

Lots of stuff going on here. Where to start? These are my two cents as an Architect of 15 years. It's going be a long reply with lots of brief overviews. 

1. Methods of Construction. 
   1. Traditional - Hire an Architect, bidding the project and then hiring a contractor. This is the most competitive bid from contractors. Get at least 3 bids. This method takes the longest to build as each process is its own. 
   2. Design Build - Where the Architect/Contractor does the design and the construction. Fast pace but the construction budget is not competitively bid.
   3. Fast Track - You would not do this but it exists. 
2. How to hire a good Architect 
   1. Make sure they are licensed in the state they practice. 
      1. You can look up with the state Architecture Board that they have not had any lawsuits or fines against their firm.
   2. Verify experience in similar types of design
   3. Ask them easy questions that they should know like, "What are the setback" or "are neighbor letter required for zoning" and maybe a hard one such as, "does a detached garage count towards the allowable habitable are of the home?" They might not know they answer but should have an idea of what you are talking about and then do some research and reply to you in a timely manner with those answer.
   4. Do they provide the 5 basic services of an Architect? Schematic Design Development, Construction Document, Bidding, Construction Administration.
      1. Each phase serves a purpose and I can go into that in a later reply if you are curious.
      2. An Architect could also provide Construction Management which is different than Construction Administration. Management is taking responsibility while administration is just observation and reporting to the owner. 
   5. Does the city require any speical hearings such as a Design Review Board, PLanning Commission, Etc.?
   6. How good are they at making a design per an Onwer's budget?
   7. Firm size does not matter regarding the price. It depends how complicated it is to get plans approved from your municipalities. An existing house is usually more work than a new house. 
3. How to hire an okay Architect
   1. They will be cheaper and probably can do the job but you might have to watch them a little more. Go to the city and ask a few questions. City staff love to talk to actual owners of the properties. If it seems simple and you can wrap your head around it then you don't need to hire the crazy expensive architect.
4. How to hire a Contractor
   1. Make sure they are licensed and insured. 
   2. Have experience in the type of construction you want to do.
   3. Get referrals.
   4. do they show up on time. If they can't show up on time to an initial or follow  up meeting it will just be worse during construction. 
   5. Do they accept that you will be holding 10% of all payments until final completion and all mechanics liens have been issued. This is a big red flag if they don't accept this.
   6. the majority of contractors outsource the labor. A Contractor might do some work but he is basically manages all the trades to do the work correctly, on time and budget. A good Contractor will fight for you when a sub makes a mistake.
      1. You can be your own contractor if you have the money to do it. If you are going for a construction loan the majority of banks will not allow you to be the contractor.

I'm giving you advice on hiring professionals. You can definitely find cheaper but I guarantee they will not be providing all these services and much more.

Onto the building methods.

1. Traditional - What you are used to seeing. The built the house on site. Takes the longest, lots of wasted materials and the construction tolerance is high.
2. Panelized - They build wall section in the factory with insulation and holes for utilities. Everything gets shipped to the site and built like a puzzle. These homes are very well insulated. It cost the same or a little more than traditional but saves time.
3. Modular - My favorite and what I am building my own right now so I am a little biased but it has worked great! See my website for my updates if you want a better understanding. Basically the entire house is built in a factory in boxes and shipped to the site. My house was built in a day! This method saves time and money. However, you have to find a company that you like. I used, Excel Homes. I called about 30 places and settled on these guys that are great. These homes can be as custom as you want. However, you have to follow a few design principals since the boxes get shipped down the highway. You can either work directly with the factory on your design or hire an Architect that has done them before.  
   1. If you are going have a basement you can even do these with the walls built in the factory.They are called, Superior Walls. I had 150 linear feet installed in 2.5 hours. It is pretty amazing. 
   2. With modular you pick everything before they even start building so your budget is pretty much set. You will still have to do site work but you will not go that much over.

We always talk about money being an issue and wasting time is definitely a money waster. I would look into modular first. 

Lots of stuff as promised and we just scratched the surface. Let me know if you have anymore questions. 

Good Luck!